Find a Better Alternative to COBRA Coverage

Get Your Free Quotes Now to Compare Plans Instantly…

Get Your Free Quotes

Your COBRA Questions Answered

Question:

Need clarification as to status of unemployment for Stimulus/Cobra coverage possibility. Terminated March 2008 but received severance pay equal to 26 Forward Weeks of Salary.

Does this qualify for the September 2008 start of unemployment stated in the Stimulus proposition? Thank you

Show Answer

Answer:

The subsidy is only available for those who are involuntarily laid off between September 1, 2008 and December 31, 2009. Those who have lost their jobs before September 1, 2008 unfortunately do not qualify for the COBRA subsidy. You do, however, still qualify for COBRA continuation coverage without the subsidy.

Don't cancel or decline COBRA just yet, but compare your options in the individual health insurance market first. Many find much lower rates and more customized coverage with an individual plan.

Question:

Hi,
I was recently laid off from a very small company. I am afraid that if I request the 65% COBRA subsidy, the company will have to absorb the cost in the short term which will hinder it from using the money
in more productive ways. They are in very dire straits and I don't want to create a financial hardship for them. How can I do this?Thank you.

Show Answer

Answer:

It's true that your former company will have to await reimbursement from the government in the short-term. Ultimately, you may have to decide if you want to keep your health insurance coverage under COBRA or help your former company financially by opting out of COBRA.

Another option is to search for a health plan on your own in the individual health insurance market. This way, you won't have to create the financial hardship and find health coverage for yourself.

Keep in mind if your company was considered a small business, then you might unfortunately not be eligible for COBRA. Only employers with 20 or more employees on more than 50 percent of its typical business days in the previous calendar year are subject to COBRA.

Question:

If you are terminated for just cause are you eligible for the cobra stimulus package?

Show Answer

Answer:

You are eligible for the stimulus if you lose your job involuntarily. The only catch is a provision in the law that states former employees can only be excluded from COBRA eligibility if dismissed for a "gross misconduct."

Question:

My spouses last day of employment was 02/27/2009, (downsizing & layoff). Can he be denied COBRA, by his previous employer, based on the fact that I am employed and have the option of adding him to my coverage? I have always maintained healthcare coverage for myself only

Show Answer

Answer:

No, he cannot be denied COBRA. But your husband does have the option to hop on your plan if he chooses under the federal law known as HIPAA. According to HIPAA, your husband has the right to "special enrollment" in your employer's plan as long he had insurance when he previously declined your employer's coverage.

Question:

In 11/08 I left a job with full benefits to relocate with my husband. As I am using my Cobra benefit with medical only in my state of relocation, I find that I am forced to pay [more than $400 per] month to my previous employer and can only receive out of network benefits with high deductibles and 40/60 coverage. They have no in network providers in my state, they say. I have been unable to find employment so far and it is looking like I will have to take per diem work without benefits. I am 62.5 years old.

Is there any help for me in this new Cobra plan?

Show Answer

Answer:

Yes, you can have 65 percent of your COBRA subsidy paid for by the government for up to 9 months. Contact your previous employer and ask how to enroll for COBRA continuation coverage.

As an alternative option, consider a short-term health plan found in the individual market from a private insurance company (for example: Aetna, the Blue Cross and Blue Shield companies, or UnitedHealthcare). A temporary plan might be the right health plan to bridge you into Medicare enrollment.

But because there are some restrictions when it comes to these kinds of plans, it’s very important to discuss your options with an insurance advisor. They’ll help you find the best plan for your situation and they can walk you through the whole process. If you’d like to speak with an insurance agent in your area, use our free service at GoHealthInsurance.com to be connected.

Question:

I was let go on February 3rd but my employer graciously extended my health insurance six months as part of the severance package.

My understanding is that until the health insurance is notified of your termination they continue to view you as employed. The reason this is important is that COBRA will not accept your claim after you are terminated.

How and when do I best apply for COBRA Health Insurance?

Also, how do I make sure that the Federal government pays 65% of my premium for up to nine months of my COBRA insurance?

Thank You in advance for answering these questions.

Show Answer

Answer:

Once your six-month extension has expired, you will be eligible for COBRA continuation coverage. Your former employer is legally required to notify you of your right to COBRA and will keep you enrolled in their plan.

Keep in mind that you don't apply for COBRA health insurance — COBRA is simply a federal law that gives you the right to keep your former employer's coverage after a job loss.

As for your 65 percent subsidy, you'll pay your 35 percent to your former employer/health plan administrator and they'll be reimbursed by the government for the rest.

Question:

My employer is going out of business and has only 14 employees — will his employees be eligible for COBRA? I heard that employees of small businesses are not eligible! That can't be true!

Show Answer

Answer:

OBRA law states that employers with 20 or more employees on more than 50 percent of its typical business days in the previous calendar year have access to COBRA. Unfortunately, for employers who don't meet these requirements, its employees do not have access to COBRA continuation coverage.

Question:

Hello,
I have a question. My husband's employer is moving to Mexico as soon as the war down there calms down. In the meantime they have cut everyone's hours to the point they can't afford to pay their bills, but are not laying off until they are ready to make the move, leaving everyone broke and struggling.

It has forced my husband into early retirement because that is the only way we can pay most of our bills. Then we were told, if we want to keep our insurance the COBRA is going to cost us [almost $800] a month.
This payment will kill us. I will be eligible for Medicare in two years, my husband in three.

Will the COBRA subsidy cover our situation?

Show Answer

Answer:

You will be eligible for the 65 percent subsidy for up to 9 months. Your husband's former employer is required by law to inform him of your eligibility for COBRA continuation coverage. You will only, though, have to pay 35 percent of your premiums to your husband's plan administrator, who will then be reimbursed by the government. You do not have to front this money.

Have your husband contact his former employer to get your COBRA continuation coverage set up.

Question:

Does a person qualify for a COBRA subsidy based on the date their health insurance plan ended at their former job, or is it based on when you left the job? Sometimes these two dates differ. Thank you.

Show Answer

Answer:

Typically, a person qualifies for COBRA when your health plan ends, even if you are still employed. Your employer is legally required to inform you of your COBRA options within 30 days of plan's end. If your employer lets you keep your coverage for temporary period of time, COBRA continuation coverage and the government subsidy begins when that temporary period ends.

Question:

I currently have COBRA from a previous employer. My COBRA ends May 31st and I will need to find new individual health coverage.

I was told that as long as you can prove that you had creditable coverage you automatically qualify for new individual health insurance without having to go through the underwriting process. Obviously with the understanding you will be paying regular premiums as you did when you were with COBRA.

Also. Are there specific rates regarding individual coverage under HIPPA if for some reason an insurance company does deny you for an individual policy.

Show Answer

Answer:

When you search for an individual health plan, your pre-existing health conditions are guaranteed to be covered if you have exhausted your 18 month COBRA continuation coverage under HIPAA. If you look for an individual plan on May 31, you actually would be subject to an underwriting process, and may have pre-existing conditions excluded.

As for individual coverage under HIPAA, yes, health insurance companies can charge specific rates and offer specific plans for HIPAA-eligible applicants. Many times, though, these HIPAA plans are very expensive.

If you're healthy now, it may actually make more sense to find individual health insurance coverage rather than choosing COBRA in the first place. Why?

An individual plan may cost less than a COBRA premium even with the subsidy

If you stick with COBRA then develop a condition during that period, you have to choose between buying an expensive HIPAA plan or getting the condition excluded when your COBRA coverage ends

Question:

Hi… When will the new program of the government covering 65% of COBRA go into effect and when it does how would a person go about getting the benefit?

Show Answer

Answer:

The subsidy is in effect right now. To get this benefit, all you have to do is accept COBRA when your former employer notifies you of your right to continuation coverage. Your former employer/former plan administrator can fill you in on the details of exactly how you should make your premium payments.

Generally speaking, you simply pay 35 percent of the COBRA premium to your former employer/former plan administrator and they take care of the rest.

Question:

I resigned this month but am covered through my current health insurance through the end of March. I plan to travel to Australia leaving this month and returning in mid-April after my COBRA coverage will begin. I know Blue Cross Blue Shield, my current insurance carrier, does cover international travel. Will COBRA as well? Do I need to specifically request this when I elect COBRA coverage to begin on 1 April? Many thanks

Show Answer

Answer:

Yes, the COBRA coverage you receive must — by law — provide the exact same benefits as your former employer's plan. So if you have international coverage with your former plan, your coverage under COBRA will as well.

Remember: COBRA isn't a type of health insurance plan — it's a federal law that gives you the right to continue your previous employer-sponsored coverage after you discontinue your employment.

If you'd like to check to make sure about your benefits, talk to your former plan administrator to confirm international travel is covered.

Question:

I currently have group health coverage through my employer with Kaiser in Hawaii (HMO). I am planning to move to northern Virginia in the fall. I know that Virginia also has a Kaiser HMO

Would I be eligible for COBRA coverage with Kaiser in Virginia, or will I lose my eligibility for COBRA since I am moving out of the Kaiser Hawaii service area?Thanks

Show Answer

Answer:

No, you will not lose your COBRA eligibility if you move to a different state. Because COBRA is a federal law, it applies to you wherever your life and career takes you — as long as you stay in the United States of course.

If you opt to continue your former employer's coverage through COBRA, you'll have to work with your insurance company to make sure you'll have convenient access to in-network doctors, hospitals, and other health care providers in your new location. HMO health plans typically only cover care from providers who participate in your insurance company's HMO network.

In the case where your Hawaii plan does not offer satisfactory access to doctors in your new location, it might not hurt to compare your individual health insurance options as well. Don't decline your COBRA continuation coverage before you found another policy, but you might find better coverage and a more affordable rate with an individual plan.

Question:

I was laid off November 6, 2008. I am on salary continuation and employer health plan until end of September, 2009.

When this ends will I still be eligible for COBRA and the government subsidy? I have heard that 9 month eligibility begins with actual date of termination (November 6, 2008). Can you clarify this for me?

Show Answer

Answer:

In your case, you are eligible for COBRA continuation coverage and the 65 percent COBRA subsidy when you lose your health coverage. If your former employer is extending your coverage until the end of September, you’ll be eligible for everything then. This is when your 9 month subsidy will begin, as well.

Question:

My company is closing on 3/31 and has about 30 employees. What do I do? Thank you

Show Answer

Answer:

Because your former employer will no longer be in business and your plan will no longer be available, you cannot continue coverage under COBRA.

To stay covered, you'll have to find health insurance in the individual market. If you know you want to find a permanent plan for yourself, compare your individual health insurance options from a major health insurance company.

You can get free health insurance quotes right here at GoHealthInsurance.com to compare plans instantly, apply online for coverage, and speak with a trusted advisor to help you find the right plan.

If you have a new job on the horizon that will offer health benefits, you can find a short-term health insurance plan in the meantime. Short-term coverage is generally affordable and provides comprehensive benefits just like permanent plans. Feel free to compare your short-term health insurance options at GoHealthInsurance.com.

Question:

My husband's job ended Friday the 13th…I am older than he, (66) and have Medicare A and B. Since I have that coverage,
do we both qualify for the Cobra plan…would Medicare be my primary and Cobra secondary? Cobra would be my husband's
only insurance.

Would we be better off to look at other plans? I just finished radiation for [cancer] and will be on expensive pills
for five years.Thank you

Show Answer

Answer:

If you had any type Medicare supplemental coverage through your husband's former employer health insurance and he involuntarily left his job, then you would be able to continue that supplemental plan through COBRA.

If not, your insurance coverage would be limited to your Medicare Parts A and B.

At GoHealthInsurance.com, we can connect you with our nationwide network of trusted advisors that specialize in Medicare Supplement plans who can help you compare your options.

Also, to ensure you have coverage for your prescription drugs, make sure you are enrolled in a Medicare prescription drug plan (informally known as Medicare Part D). The plans and benefits are administered by private insurers, so you'll have to enroll with the company of your choice.

The best time to enroll in a Part D plan is during what's known as "open enrollment" between November 15 and December 31 of each year. During this open enrollment period, insurance companies must accept you into a prescription plan. If you do not apply for a Part D plan during open enrollment, you will be subject to the underwriting process.

Question:

Hi,
I was wondering if I would be available for the subsidy cobra insurance program that is being offered for the 9 months?

My last day of work from my employer was August of 2007 they had carried me at a discounted rate up until the month of August of 2008 is when they had offered me the cobra insurance. So, the month of August of 2008 was the first month I made my payment to my employer for the cobra health insurance…

Does this mean I am not qualified for the 65% subsidy program??Thank you

Show Answer

Answer:

In your case, you will not be qualified for the 65 percent subsidy. Because your job loss occurred before September 1, 2008, you won't have access to the COBRA premium reduction.

Question:

If you were laid off from a position in March 09 and received a two months period to sign up with the COBRA plan, then started a new job few weeks after, can the person use the COBRA plan provided by the former employer even though he/she is still working with a new employer?

Thank you for your help.

Show Answer

Answer:

Yes, the person can continue coverage from their former employer under COBRA. Depending on the person's situation, this might be a good option if a new employer didn't provide health benefits and he or she had a serious pre-existing health condition that might be excluded in a private insurance plan.

On the other hand, if the person was in good health without benefits in the new job, they might be better off finding their own plan in the private market.

A private individual health insurance plan might actually cost less than COBRA coverage with the subsidy.

But remember not to drop or decline your COBRA coverage until you are accepted into an individual plan that truly fits your needs.

Question:

My husband was laid off from his job in January 2009. He refused the COBRA based on price and we took the insurance offered through my full-time position. My husband recently took a position that offers no benefits. As I am now needing to make a change due to childcare, I can not continue full-time and will lose my benefits.

Can he still get COBRA from his former employee? We have tried private insurance but due to pre-existing conditions they say will never be covered we can't go that route now.

If we are able and do go to the COBRA plan, what happens when it runs out to our pre-existing conditions?

Show Answer

Answer:

If your husband previously turned down COBRA continuation coverage with his former employer, he can still enroll – with the 65 percent government subsidy included. But hurry! The law gives those who turned down COBRA a 2-month grace period to enroll which ends this month!

Have your husband contact his former employer as soon as he can to enroll in continuation coverage.

When it comes to pre-existing conditions, you'll be able to continue coverage with conditions included under another federal law – HIPAA. Under HIPAA, you are guaranteed to be accepted into a private health plan and have conditions covered.

The catch is that you're only HIPAA-eligible once your COBRA continuation coverage completely runs out (which lasts 18 months for most). Also keep in mind the 65 percent subsidy only lasts for 9 months.

You should know, however, that many insurance companies only offer certain plans for HIPAA-eligible applicants – and those plans can be expensive.

When your husband is facing this, he can contact our nationwide network of licensed health insurance agents to help him through the process. Our agents are licensed with many of nation's top insurance companies and they can really help your husband weigh his options.

Just come back to GoHealthInsurance.com when the time comes.

Question:

My hours were cut from 40 hours per week to 20 hours per week in January 2009. Do I qualify for assistance in paying for COBRA Insurance?

Show Answer

Answer:

Under the American Recovery and Reinvestment Act of 2009, a 65 percent subsidy for COBRA premiums is only available for those who have lost their jobs involuntarily between September 1, 2008 and December 31, 2009.

While you do not qualify for the subsidy, you are still eligible for COBRA continuation coverage without government assistance. You have the right to keep your coverage for up to 18 months, or 36 months if you are disabled.

If you find that COBRA premiums are just too expensive, it's a good idea to compare rates for your own individual health plan. You can view rates online with our service and we'll connect you with health insurance agents in your area to help you explore your options here at GoHealthInsurance.com.

Question:

My husband was laid off on January 9th, and we have been paying Cobra premiums. We have also received the packet stating that he is eligible for the economic stimulus benefit. One of the questions asks if he is eligible for group insurance through my employer. He is eligible but the premium is over $625 and they do not accept preexisting conditions (which he has). He was already turned down when he tried to enroll in Blue Cross Blue Shield.

Will we still be able to claim the benefit?

Show Answer

Answer:

According the American Recovery and Investment Act of 2009 and U.S. Department of Labor, to be eligible for the 65 percent subsidy, you cannot be eligible for a spouse's employer coverage at the same time.

In insurance lingo, your husband is eligible for something known as "special enrollment" into your employer's group health plan. But he may be HIPAA-eligible (HIPAA is another federal law), which would guarantee his pre-existing health conditions would be covered under your plan.

If your husband decides to enroll in your employer's plan and had continuous health coverage for more than 12 months prior to enrollment, HIPAA states that his pre-existing conditions cannot be excluded.

All he has to do is prove he had "creditable coverage" before he enrolls in your plan. Here are the ways to prove creditable coverage (courtesy of the U.S. DOL).

Obtain a certificate of creditable coverage from your previous health insurer or former employer

Pay stubs that reflect a deduction for health coverage premiums

Copies of premium payments or other documents showing evidence of coverage

Explanation of benefit forms

Verification by a doctor or your former health plan

There's one very important thing to remember: make sure your husband doesn't go more than 63 days without coverage. If he does, then he forgoes his HIPAA-eligibility.

Question:

For someone unemployed and covered by COBRA who receives a life-threatening diagnosis late in their 18 month period of COBRA coverage, would their coverage still be terminated after 18 months or is there an exception that would allow them to keep their COBRA coverage to deal with their life-threatening condition? Thanks

Show Answer

Answer:

Generally speaking, 18 months is the maximum amount of time you can continue a former employer's health coverage under COBRA. The exception for individuals is that if you're disabled, you can extend COBRA continuation coverage for a maximum of 36 months.

Because COBRA is only a temporary solution, a health condition unfortunately doesn't delay the time period in which you can continue health coverage.

A person with a serious health condition, though, can still keep their coverage for that condition under another federal law called HIPAA.

Under HIPAA (the Health Insurance Portability and Accessibility Act), insurance companies are prohibited from denying, excluding, or limiting coverage based on a pre-existing health condition.Typically, a person is HIPAA-eligible if they lost a job, exhaust COBRA continuation benefits, and don't go longer than 63 days without coverage.

The person with the serious condition has a few options to keep their coverage:

If the person is married and their spouse has coverage with an employer, he or she may enroll in their spouse's coverage as a special enrollee. To be a special enrollee, he or she doesn't need to exhaust COBRA but must have had coverage when they previously declined to enroll in a spouse's plan.

The person may also enroll in a new employer's group health insurance plan and keep coverage for all of their conditions. Again, he or she must not go longer than 63 days without coverage to be HIPAA-eligible.

The person may also purchase an individual health plan in the private market. Under HIPAA, private insurance companies cannot deny, exclude, or limit coverage for all individual plans. But remember that insurers may only offer certain plans to HIPAA-eligible applicants and these HIPAA plans are typically very expensive.

Question:

I was laid off in January of this year and did not elect to take COBRA. I recently received notification that I am eligible (because of the stimulus package) to sign up again and potentially for the reduced premium.

What I am unclear about is if I am still eligible to sign up for Cobra even thought I am not eligible for the reduced premium because I have access to another group plan.

Show Answer

Answer:

Under the American Recovery and Reinvestment Act of 2009, the reduced COBRA premium is only available for those who involuntarily lost their jobs and do not have access to other group health insurance.

But you still are allowed to enroll in COBRA continuation coverage through your former employer for the full premium if you wish.

Question:

I started my COBRA coverage in March 2008 when I lost my job as my company was acquired by another. I started a new job in June 2008, but elected not to take their group health plan as it was inferior to what I had from COBRA and my employer was exploring alternative coverage. This job also ended on 12/31/08 when my company merged with another.

Since I lost my job during the required timeframe but was already on COBRA from a previous job can I qualify for the subsidy?

Show Answer

Answer:

According the U.S. Department of Labor, the law states individuals qualify for the COBRA subsidy if "the COBRA election opportunity relates to an involuntary termination of employment that occurred at some time from September 1, 2008 through December 31, 2009."

Because your COBRA coverage is related to a job loss not in the specified time period, the subsidy unfortunately won't be available to you.

If you do run into a situation where a new employer's plan isn't up to par with your old plan, it never hurts to check out your individual health insurance options. You might find that an individual plan provides the right coverage at the right price. If you're looking for further advice, try out our service at GoHealthInsurance.com and we'll connect you with trusted insurance agents to help you.

If you do decide to explore individual health plans, make sure you don't decline or cancel your current coverage until you get a letter of acceptance from a new plan.

Question:

My husband was laid off March 18, 2009. We had to wait until his insurance ran out on March 31, 2009 before we could sign up for the Cobra option. We filled out all the paper work and sent it in only to receive confirmation on April 9, 2009 that we were denied because they said we could get on to my insurance at my work without a waiting period or pre-existing issues.

Is there a law that I could look up or someone to call to prove to my husband's former company that they can not deny us?

Show Answer

If you choose COBRA continuation coverage as a temporary insurance solution and you have access to other group coverage without a waiting period or pre-existing condition exclusions, then you may need to decline enrollment in the other group plan. This is most likely why you received the statement from your husband's former employer.

According to the U.S. Department of Labor, "In general, if you get coverage from another employer's group health plan that is not subject to a pre-existing condition exclusion, or from Medicare, your COBRA coverage can be cut off. This means that in most situations you would have to decline the other coverage if you decide you prefer the COBRA coverage."

Remember: never decline or cancel current coverage until you can confirm or get a letter of acceptance in the alternate coverage. Also, be certain that COBRA is the best way to go before you take action.

You can also request an expedited review of any denial of premium reduction by a former employer or plan administrator. To do this, you'll need to submit an application form from the U.S. Department of Labor. The form will be available on http://www.dol.gov/COBRA. If you need further assistance, call 1-866-444-3272 to speak with a federal advisor.

Question:

I lost my job on March 13th and was not provided with specific information regarding my options for continued coverage so we signed up with my spouses plan on April 1. Unfortunately, on April 9th my wife was informed her position at a local hospital will be eliminated shortly and because it's a religious organization there is no COBRA available.

I have not received my COBRA election information yet so is it possible to now opt out of this plan and receive the benefits of the government subsidy and elect COBRA?

Show Answer

For most employers with 20 or more employees, with the exception of employers sponsored by certain religious organizations, they must inform you within 30 days of the qualifying event that made you eligible for COBRA continuation coverage. In your case, the qualifying event was your job loss on March 13th.

You then have 60 days to decide whether or not to elect COBRA coverage. The 60-day window starts on the day of the qualifying event, or the day you are notified of your COBRA eligibility, whichever comes later. Even if you previously declined COBRA, you may still enroll as long as you do so within this 60-day window.

It also appears you will be eligible for the subsidy, because you involuntarily lost your job between September 1, 2008 and December 31, 2009 and currently do not have access to other group health insurance coverage. To learn more and enroll in COBRA continuation coverage, contact your former employer.

Question:

I was laid off on 12/31/2008 and signed up for COBRA effective 1/1/09. My severance package provides that for the next six months (Jan-June 2009), my share of the health insurance premium will be the same amount of $125/month that I have been paying as an employee; company will pick up the balance.

Question: For my particular circumstances, when does the OBAMA 65% employee share kick in? Is it 1/1/09 or 7/1/09? For obvious reasons, I am hoping the 65% deal kicks in 7/1/09 so that I pay 65% of $1,100/month instead of the full amount.

Thanks and God bless

Show Answer

Answer:

Yes, your COBRA continuation coverage and the 65 percent subsidy/premium reduction will begin when your employer's extension has ended. Your former employer is required by law to inform you of your right to COBRA coverage and the premium reduction. As long as you don't have access to other group coverage, you'll be eligible for the 9-month long premium reduction.

Question:

Hi, I was laid off in November 2008 and was given COBRA Coverage, but did not elect because I was able to find a job in December 2008. However I had to resign in March 2009 due to relocation. Because I was offered COBRA through my recent employer ( the company that I resigned in March 2009), am I eligible for the stimulus cobra coverage?

I am working at a small medical office now, and am currently using my Cobra Coverage, my concern is if I get laid off again here at this small medical office, will I be eligible for the stimulus cobra coverage?

Thanks

Show Answer

Answer:

Under current law, unfortunately you will not be eligible for the COBRA premium reduction/subsidy with the position you resigned from in March 2009. Only those who lost their jobs involuntarily will qualify for the subsidy. Regretfully you'll also not qualify for the subsidy if you happened to be laid off from your current position as your COBRA coverage must relate directly to an involuntary job loss.

If you do find that you can't afford your COBRA premiums, it doesn't hurt to compare your individual health insurance options. Don’t hesitate to use our free service to explore plans and talk to a trusted advisor to help you out.

But make sure you don't cancel your COBRA coverage until you've found the right plan, apply, and receive an acceptance letter!

Question:

Good afternoon, I was let go at my job on Feb 17, 2009. I just received my first bill for Cobra from my ex employer, [but] they charged me the full price….how can that be? Shouldn't I only have to pay 35%?

Thank you

Show Answer

Answer:

We're getting wind of cases where both the government and employers are behind on getting this COBRA subsidy straight, which is leaving consumers on the hook for the full premiums. But according the new federal law, any premiums paid for coverage periods starting on or after February 17, 2009 will be credited or reimbursed to you.

In most cases, any overpayment can be used as a credit toward future coverage. It's a good idea to contact your former employer or plan administrator to talk about exactly how they want to coordinate this.

Question:

I have Humana insurance now and am planning to move to Africa soon. What options will I have with COBRA?

Show Answer

If you are currently covered under an employer's sponsored group health insurance plan and it provides coverage overseas, then you will be able to continue that coverage under COBRA for a temporary period of time. Remember, COBRA isn’t a plan itself - it's a federal law that gives you the right to keep your former employer's coverage after a job loss.

If your old plan didn't have international coverage, it's a good idea to check out your individual health insurance options.

Question:

My husband was laid off in March and he had a great insurance plan, I am pregnant and due in July, we have been paying for COBRA. He has then found another job and qualifies for benefits in his new company June 1st. I would like to stay on COBRA and my old plan since I have meet almost all the deductibles as well as it would be much cheaper for the delivery, etc expenses if I use the other plan.

Can I still stay in cobra and delay getting on his insurance until after cobra is up (6 months)? or even just after the delivery?

Show Answer

Answer:

You are allowed to keep your coverage with your husband’s old plan under COBRA for the maximum amount of time - up to 18 months or 36 months if you're disabled.

However, you will not qualify for the reduced premium COBRA subsidy. The premium reduction is only available for those who do not have access to other employer-sponsored health insurance.

You have the freedom to choose temporary COBRA continuation coverage for the full premium or move to your husband's new plan. Under another federal law, HIPAA, coverage for pregnancy cannot be excluded or limited if you decide to move to a new health plan. It may be best to stay on COBRA like you planned, but don't hesitate to contact your husband's new plan administrator to learn more.

Question:

I was laid of Dec. 1, 2008 and I've been paying COBRA since then. I just found out that the company that worked for is now going out of business. Will I still be eligible to receive COBRA and the subsidy?

Show Answer

Answer:

Because COBRA only allows you to continue a former employer's coverage, access to that plan is dependent on whether or not it is still active.

To stay covered, you'll have to compare your options in the individual health insurance market. You might find that an individual plan might actually be more affordable that COBRA with the subsidy - and provides more tailor-made coverage for your needs.

Remember that you'll also be HIPAA eligible. This means that you'll have access to certain individual plans that do not exclude or limit coverage for pre-existing health conditions. There's a catch though - HIPAA doesn't require insurance companies to sell any particular plan to HIPAA-eligible applicants. That means a HIPAA plan might be considerably more expensive than others. But if you do have a pre-existing condition, HIPAA helps make sure you can keep coverage for it.

If you'd like, use our free service to get connected with a licensed agent in your area to help you explore your options.

Question:

I was recently let go from a small company with less that 20 employees. Do I still qualify for the 65% subsidy for the COBRA rates? I have a chronic health condition and can not get individual insurance, nor can I afford to go without it!

Show Answer

Answer:

Under the new law, the 65% COBRA subsidy is unavailable for businesses with fewer than 20 employees because small businesses are not covered under COBRA as a federal law. But many states in the U.S. have state laws that do give small business employees access to COBRA continuation coverage - and the 65% subsidy.

Each state, however, varies in the length of time a small business employee can continue employer health insurance after a job loss. Georgia, for example, only allows small businesses to extend coverage for 3 months. In this case, a Georgia resident would qualify for COBRA and the 65% subsidy for 3 additional months.

According to the Kaiser Family Foundation, there are currently 40 different states that have Mini COBRA laws. View the list here.

Question:

I was just wondering if COBRA would apply to me if I was told I needed to go part-time instead of full-time (downsizing); and because of this I am loosing my benefits of health insurance. I only was given a weeks notice; as of May 1st I would be considered part-time and have no health insurance.

Show Answer

Answer:

If your employer currently provides health insurance coverage and you were previously enrolled when you were full time, then yes, you will be eligible for COBRA continuation coverage. You, however, would not qualify for the 65% premium reduction because that is only available to those who involuntarily lost their jobs.

Question:

My husband passed on Jan 1, 2007. His company offered me 2 years of health coverage, and the option of applying for COBRA at the end of that period. I have been unemployed since 2007. If I get a job before the end of this year, do I lose the opportunity to apply for COBRA?

Show Answer

Answer:

No, you do not lose the opportunity to apply for COBRA continuation coverage. If your husband's former employer provided coverage for you, then you can continue their coverage for up to 18 months, or 36 months if you're disabled. Even if you start a new job, you’ll be eligible for COBRA.

Remember though, you won't qualify for the 65 percent subsidy as that applies to those who were involuntarily terminated from their job between September 1, 2008 and December 31, 2009.

Question:

I have Humana insurance now and am planning to move to Africa soon. What options will I have with COBRA?

Show Answer

Answer:

If your health insurance plan with your former employer provided international health coverage, then you can continue on that same plan for up to 18 months under COBRA. But if the plan provides no coverage overseas, you'll have to find an individual health plan for yourself to stay covered.

A few insurance companies help cover health care costs when you are overseas. But if you are planning a permanent move outside the U.S., it might be best to explore your travel medical insurance options. If you’d like, we can connect you with a local agent in the Go Health Insurance Network to help you figure this out. Just use our service to get free health insurance quotes to start.

Question:

If I am on COBRA and I take a job without benefits, can I still continue the COBRA until I get medical insurance?

Show Answer

Answer:

Yes, you can continue your COBRA coverage with a previous employer even if you are in another job. Once you find alternative medical insurance, in the individual market, for example, you can discontinue COBRA. But remember, do not cancel or stop COBRA until you've received a letter of confirmation from your new health insurance company informing you you’ve been accepted in coverage.

Question:

I currently have Kaiser HMO through my employer. Because I will be moving out of the Kaiser service area in a few months, I will not be able to use COBRA in my new state with the new state's Kaiser plan.

My employer also offers a different health plan, which does have a network of providers in my new state. Even though I am a Kaiser member, do I have the right to use COBRA through the other plan my employer offers, since it would be my only option for exercising my COBRA rights?

I need to use the COBRA due to pre-existing medical conditions that I do not want excluded when I find a job in my new state (and get a new health plan.) Thanks.

Show Answer

Answer:

The COBRA law is designed to give you the right to continue coverage from your previous employer's plan. So you'll only have the option to keep the coverage on your current plan, not the other provided by your employer.

You do have a few options. Some employers allow you to switch health plans if they offer more than one. If you work with your current employer and plan administrators, there's a chance you could switch to the plan that provides coverage in your new state. Then you’ll be able to elect COBRA continuation coverage and keep that plan for up to 18 months.

Keep in mind if you are voluntarily leaving your current job, you do not qualify for the 65 percent premium reduction.

If this is not possible, you'll have to shop for an individual plan even if you expect to have a job with health benefits in the future. This is especially important if you have a pre-existing health condition because you can't go longer than 63 days without coverage. If you go longer than 63 days without health insurance, a new employer plan could limit or exclude coverage for your condition.

A short-term health insurance plan is a good option if you're not sure how long it will be before you find a new job with benefits. And some employers require a waiting period of a few months before you are eligible for coverage. With a short-term plan, you can stay covered.

If you'd like to talk to an agent about your options, feel free to use our service. Just use your new zip code and address so we can match you with an agent in your new location.